End of the Phony IRS Scandal?

Well, the IRS "scandal" turned out to be phony. It was apparently what I thought it was: some IRS agents taking shortcuts to determine which political organizations seeking tax-exempt status should receive additional scrutiny. In particular, ones that seemed to be overtly political -- or commercial -- and not "social welfare" organizations.

They demanded more information from groups of all stripes: medical marijuana advocates, groups advocating the president's health care law; interestingly, "occupied territory advocacy" groups received the most scrutiny of all. Most telling to me is the following:

But groups with no political inclinations were also examined. “Open source software” organizations seeking nonprofit status “are usually for-profit business or for-profit support technicians of the software,” a lookout list warns. “If you see a case, elevate it to your manager.”

I'm in software, and I know how these open-source software companies work: they let the broader community of software developers write all their code for them -- for free -- and then they turn around and sell their own version of it (with support) for real money. (These are usually systems like Linux.) In essence, these companies are lining their pockets with the labor of volunteers who nobly donate their own time -- lots of it -- to the cause of open-source software.

In short, the IRS agents were looking for scammers: political scammers on the right looking to offer tax deductions to their billionaire donors for political action, political scammers on the left looking to leverage their smaller donor pool with tax-exempt status, as well as corporate scammers just looking to get the rest of us to pay for their lobbying expenses.

The real scandal here is not the IRS took these shortcuts: can you really blame these IRS agents for using keywords to identify the organizations that are most likely to try cheating the government? They're just trying to do their jobs efficiently. Seriously, isn't that what we'd expect the IRS to do in the first place?

No, the real scandal is that the Treasury inspector general omitted the salient fact that the IRS was looking into all groups seeking questionable tax-exempt status, and was not singling out conservative groups.

Perhaps we could get the NSA to look into the inspector general's cellphone, email and Internet usage to determine who gave him those instructions...